Learn about the five common uses for digital marketing transformation.
Even in this day and age, there are still many companies that have yet to fully transition from traditional marketing methods.
As surprising as it may sound, it’s not uncommon to find quite large, successful businesses conducting most of their marketing activities through ‘analogue’ techniques that are often decades old.
Although such companies usually have a rudimentary website and social media presence, they tend not to be actively using online channels for customer acquisition and engagement.
Instead, they rely on a mix ‘old-school’ channels such as:
- Direct mail
- Cold calling
- Telemarketing
- Television advertising
- Radio advertising
- Referrals
- Print advertising
Whilst it’s true that these channels still have much to have offer, the reality is that, generally, they are either more costly or less scalable than digital channels. The need to update and embrace digital transformation is something that all mature businesses will eventually face.
Signs it’s time to transform:
- You’re reaching the limits of your current audience
- You need to explore new channels for lead generation
- Cost per acquisition (CPA) has become too high via old methods
- Growth is slowing
- You’re losing market share to new market entrants
Threat level for inaction: HIGH
Companies that have emerged from the start-up phase with product-market fit, and sufficient capital to fund scale-up, are often ripe for digital transformation.
Scaling-up marketing for growth is the process of expanding a company’s marketing efforts in order to drive increased revenue and profits. This may involve increasing the budget for marketing activities, expanding the reach of marketing campaigns, and trying new marketing channels or tactics.
However, a significant digital transformation is often a prerequisite for a successful scale-up; original marketing infrastructure that powered the venture through early-stage growth may no longer be fit for purpose.
In these circumstances, it is common for companies to invest in a substantial re-building of key digital assets and the creation of new content.
There are several hallmarks of a digital marketing transformation in these cases:
- Identifying (and reaching) new target audiences
- Setting new ‘stretch’ goals and objectives
- Developing a revised marketing strategy
- Allocating additional resources efficiently
- Establishing a more robust data analytics & reporting regime
Overall, scaling up marketing for growth requires careful planning and transformational change in order to ensure that the expansion is successful.
Signs it’s time to transform:
- You need new content to ‘educate the market’
- Fresh design is required for your marketing collateral
- Early advertising campaigns are no longer scalable
- You need to explore new channels for user acquisition
- Your brand story is under-developed
Threat level for inaction: HIGH
Of all the forces that can kill a good business, digital disruption is the most lethal.
It refers to the process by which digital technologies and business models disrupt traditional industries and markets.
Digital disruption can occur when new technologies or business models emerge that fundamentally change the way a particular industry operates, often resulting in new entrants to the market and the displacement of older, established players.
Digital disruption can have significant impacts, such as:
- Displacing industry leaders
- Creating new markets
- Changing consumer behaviour
- Loss of market share
- Starting a ‘price war’ between competitors
A program of transformational change is perhaps the best form of defence for mature companies facing disruption. Even if a disruptor is seeking to disintermediate an entire industry, those businesses that engage in digital marketing transformation are best placed to weather the storm.
Signs it’s time to transform:
- Your margins are shrinking, or under pressure
- There is a lot of M&A activity in your industry
- New competitors are stealing your customers
- Your web traffic is declining
- Your cost-per-acquisition (CPA) for new clients is rising
Threat level for inaction: CRITICAL
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Competitive pressure is a normal part of doing business. Rather than something to be feared, it should be viewed as a powerful growth opportunity.
Ideally it can motivate companies to innovate, improve their products or services, and find new ways to differentiate themselves in the market.
This pressure can come from a variety of sources, including:
- Other companies: The presence of other companies offering similar products or services can create competitive pressure, as businesses must differentiate themselves and offer value to customers in order to compete effectively.
- Changes in the market: Market conditions can also create competitive pressure, as businesses may need to adapt to changing consumer preferences or new technologies in order to remain relevant and competitive.
- Investors and stakeholders: Investors and other stakeholders may also put pressure on a business to perform well and meet certain financial or performance targets.
The problem comes when a business is either too slow in responding to such pressures, or when they fail to respond at all.
In many cases a program of digital marketing transformation is a large part of the solution. It can be a highly effective form of forward defence that actually drives growth into new markets.
Signs it’s time to transform:
- A recent increase in your advertising spend has had little effect
- Incremental change in your marketing is not working
- Digital agencies or consultants never seem to get the results you need
- Your sales team is idle, or has excess capacity
- Revenues are down, and costs are up
Threat level for inaction: VERY HIGH
A less common use case for digital marketing transformation is the preparation of a business for sale. If it’s time for the founders to cash out of the business, then maximising shareholder return becomes paramount. One way to achieve this is to embark on a digital transformation in the months and years before the business is sold.
A well-timed and well-executed digital transformation project can be a strategic masterstroke.
The positive effect on sales and revenue are broadly understood:
- a widening of the target audience
- deeper customer engagement
- access to new, hyper-growth opportunities
- increasing sales volume
However, less well known is the increase in capital value that may also arise.
This is especially so, if:
- automation can unlock epic efficiencies
- costs of goods sold (COGS) subsequently falls
- profit margins expand
- new, productive digital assets are also created
Whether the shareholder value will be ultimately unlocked via trade sale, listing, or merger, is immaterial. A digital marketing transformation project is a sure-fire way to realise the full sale value of any business.
Threat level for inaction: MEDIUM
What is transformation in digital marketing?
Transformation in digital marketing refers to the process of adapting and evolving a company’s marketing strategies and tactics to take full advantage of the opportunities offered by digital technologies.
It involves a shift away from traditional marketing methods and towards a focus on digital channels and tools to reach customers, build brand awareness, and drive business growth.
The transformation process typically involves the following steps:
Assessment: Evaluating the current state of a company’s digital marketing efforts and identifying areas for improvement.
Strategy Development: Developing a comprehensive digital marketing strategy that aligns with business goals and takes advantage of digital technologies.
Technology Implementation: Adopting and integrating new technology and tools to support digital marketing initiatives.
Data-Driven Decision Making: Using data and analytics to inform marketing decisions and optimise efforts.
Customer-Centric Approach: Focusing on providing a personalised customer experience through targeted and relevant content and offers.
Agile Implementation: Continuously testing, iterating and improving digital marketing initiatives.
Measurement and optimisation: Measuring the success of digital marketing efforts and making data-driven optimisations.
Continuous Evolution: Staying up-to-date with the latest digital marketing trends and technologies, and continuously evolving the strategy.
The goal of digital marketing transformation is to create a more efficient and effective marketing operation that can effectively reach and engage customers in the digital age.
How do I start digital transformation for my business?
Starting a digital transformation for your business can be a complex process, but here are some key steps to get started:
- Assess your current digital presence: Evaluate your current digital marketing efforts, including your website, social media, email marketing, and any other digital channels you use. Identify areas for improvement and prioritize your goals for the transformation.
- Develop a digital strategy: Define your target audience, identify the channels you will use to reach them, and create a plan for how you will engage with them. Consider what technologies and tools you will need to support your efforts.
- Invest in technology: Select and implement the technology and tools that will support your digital marketing initiatives. This may include data analytics tools, content management systems, social media management tools, and email marketing platforms.
- Focus on customer experience: Make customer experience a top priority by creating targeted and relevant content and offers. Continuously gather and analyse data to understand customer behaviour and preferences, and use that information to improve the customer experience.
- Implement agile marketing: Continuously test and iterate your digital marketing initiatives based on data and customer feedback. This will help you quickly respond to changes in the market and customer needs, and continually improve your efforts.
- Measure and optimise: Continuously measure the success of your digital marketing initiatives using key performance indicators, and use the data to make optimisations and improve results.
- Stay up-to-date: Stay informed about the latest digital marketing trends and technologies, and be prepared to evolve your strategy as needed.
Remember, digital transformation is an ongoing process, and it’s important to continuously review and refine your efforts to stay ahead of the competition.
